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BT Pay Bulletin 6

The CWU negotiating team led by Andy Kerr, Deputy General Secretary (T&FS) are pleased to report to members that a full and final agreement on pay for all NewGRID grades has been reached with BT.

The pay review was extremely complex and protracted, partly due to BT making it clear from the outset that they were not willing to make an increase that was fully pensionable for members of the BTPS. Additionally, the CWU had a mandate to close the pay gap between members employed prior to September 2014 who are on higher rates of pay than those employed after September 2014. The negotiating team have pushed BT as far as possible to increase their offer; we are therefore confident that we have secured the best possible deal.

The full and final offer made to the negotiating team which has been unanimously endorsed by the BT Executive Committee and is now recommended to members is:

* 2.6% consolidated increase from 1st January for all Team Members (NewGrid Grades);

* An additional £120 consolidated increase to pay from 1st January 2017 for NewGRID grades who are employed on Workforce 2020 terms, conditions and salary rates (pro rata for part time workers);

* Allowances that automatically increase with pay will increase by 2.6% as well as the Scottish Distant Islands allowance;

* For Team Members that are NewGRID grades and members of the BTPS (defined benefit pension) 0.7% of the pay increase will be categorised as pensionable;

* For Team Members that are NewGRID grades and members of any other pension scheme (such as the BT Retirement Savings Scheme ) the full pay increase will be categorised as pensionable in accordance with the rules of that scheme;

* The date of the next annual pay review will move to 1st April 2018

* To clarify future annual pay reviews will be guided by the February inflation rate published in March.

Why the CWU believe you should vote YES for the agreement

* Although discussions between the CWU and BT over whether to use CPI or RPI as the appropriate inflation measure were fraught. We are pleased that we have secured for everyone an above RPI – real terms increase at 2.6%;

* We are pleased that BT has accepted that they need to increase pay for new grades recruited after 1st September 2014. We are therefore confident that the extra £120 on top of the 2.6% will help in closing the pay gap between the newer and older grades;

* In terms of pensions, it important to remember that those members not in the BTPS scheme (primarily those in the BTRSS employed after 2001), will get a fully pensionable pay rise. Those members employed before 2001 and in the BTPS, will receive a 0.7% pensionable pay rise. This is due to any increase in pensionable pay for BTPS members affecting the future pension liabilities and therefore will require BT to make much larger pension deficit repayments. It’s a settlement the negotiating team were compelled to agree, in the spirit of securing the BT pension scheme into the future but it’s important to emphasise that BT have said that, these proposals are specific to the 2017 pay review and apply this year only;

* BT wanted to move the future pay review date to 1st April 2018 without backdating this pay review to 1st January. We stood firm that this should be backdated to 1st Jan 2017. However it’s also important to remember that the last pay review date was 1st April 2016.

A further Q&A will be issued to members explaining the agreement in more detail. Please send any questions you may have to: btpay@cwu.org

An electronic consultative ballot will be sent to your work email addresses (bt.com or openreach.co.uk). The timetable for the consultative ballot is :

* Ballot opens: Thursday 30th March

* Ballot closes: Tuesday 11th April

Your pay including any backdated pay, from January will hopefully be made in your April salaries.

The CWU recommends you vote YES in the forthcoming ballot

The grades below are a snapshot of the various pay grades at the maximum level. Please note this is the CWU assessment of the changes and they are subject to BT’s confirmation.